Answer to Question 1
B
Answer to Question 2
Agreements between purchasers and vendors are called contracts, and they are enforceable in court. Contracts may be established in writing or orally, but written contracts are normally preferred.
Contracts must be legally valid and contain an offer: a proposal to perform an act or pay an amount that, if accepted, becomes a legally valid contract. There must also be acceptance, an agreement to the exact terms and conditions of the offer, and consideration, the payment made in exchange for the contract promise. If the acceptance is not the same as the offer, this becomes a counteroffer and a new contract. When acceptance is the same as the offer, an express contract is created.
Terms and conditions refer to general provisions that apply regardless of the specific products being sold or purchased. Examples of these boilerplate clauses include exclusiveness of the purchase order, services and deliverables, delivery schedules, and risks of loss. Other terms and conditions can concern packaging and crating charges, guarantees and warrantees, insurance, indemnification, and procedures for handling rejected products. Still other concerns can relate to confidentiality, termination, legal remedies, and failure to perform.
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